The central bank had earlier released a warning to banks about prudent lending standards amid record low interest rates.

In recent weeks, the Australian Prudential Regulation Authority and the International Monetary Fund have also raised concerns about the risks of rising asset prices and loose lending practices.

NSW leads in amount of SMSF property investment

The RBA says there has been a particularly strong increase in SMSF property investment in New South Wales.

"Investor housing loan approvals now account for around 40 per cent of the value of loan approvals in the state, a share last recorded in 2004, although some of this no doubt reflects a decline in first home buyer activity," it said.